Live Due Diligence Masterclass Starts In:
JULY 3, 2025 @ 12:00 PM CST
Avoid IRS Fines, Lawsuits & Criminal Charges:
Free Masterclass Reveals
How to Protect Your Tax Practice from Due Diligence Audits & Penalties
If you’re a tax professional preparing tax returns with EITC, AOTC, CTC/ACTC/ODC or HOH, your livelihood could be at risk.
Learn exactly what to do if you receive a Due Diligence Audit Letter or how to prepare before you get one.
FREE MASTERCLASS
LIVE EVERY THURSDAY AT 12:00 PM CST
Don’t miss your chance to level up!
Discover how to protect your tax practice from expensive audits, penalties, and sleepless nights. Get real strategies from real experts that’ll keep you compliant and profitable.
IT'S FREE. IT'S LIVE. IT'S EXACTLY WHAT YOU NEED.
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Upcoming Live Masterclass on JULY 3, 2025 @ 12:00 PM CST
Did You Know…
The IRS can fine you $635 per offense, which is $2,400 per tax return for failing to meet due diligence requirements?
Those fines cannot exceed $60,000 for 25 clients.
Improper documentation or misleading information can even result in criminal penalties?
Upcoming Live Masterclass on
JULY 3, 2025 @ 12:00 PM CST
These are just a few of the notices that could land in your mailbox.
Do you know what to do
if you get one?
Inside this FREE MASTERCLASS, you’ll learn:
What the IRS looks for in your returns
The documentation you MUST have to protect yourself
How to respond to audit letters with confidence
How to set up audit-proof systems in your tax practice
The #1 mistake most tax pros make, and how to avoid it
Upcoming Live Masterclass on
JULY 3, 2025 @ 12:00 PM CST
REGISTER NOW FOR THE UPCOMING LIVE MASTERCLASS
JULY 3, 2025 @ 12:00 PM CST
HOSTED BY:
Dr. Ambrea' Lacy
With over a decade of experience, she’s helped hundreds of preparers grow their businesses through expert mentorship and cutting-edge software solutions.
As the founder of a top-tier tax software company, Ambrea’ blends innovation with real-world strategy, giving professionals the tools and confidence to scale with purpose. Whether you’re just starting out or ready to level up, Ambrea’ is here to help you lead, grow, and succeed.
Ready to protect your practice and your peace of mind?
Reserve your free seat in the masterclass now. Spots are limited.
Upcoming Live Masterclass on JULY 3, 2025 @ 12:00 PM CST
FAQs
What is IRS Due Diligence and why is it so important for tax professionals?
IRS due diligence refers to specific requirements tax professionals must meet when preparing returns that claim the Earned Income Credit (EIC), Child Tax Credit (CTC), American Opportunity Tax Credit (AOTC), or Head of Household (HOH) status.
You are legally obligated under IRC §6695(g) and Treasury Reg. §1.6695-2 to properly interview, document, and evaluate eligibility for these credits. Failing to meet these obligations can result in substantial penalties — even if the tax return is accurate.
What are the penalties for noncompliance with IRS due diligence?
The IRS may audit up to 25 files, and for each file, you can be assessed up to 4 separate $635 penalties, totaling up to $2,540 per file. That’s a maximum exposure of $63,500 for one audit.
Here are the 4 key due diligence penalties:
- Knowledge Standard Violation (you knew or should have known the claim was incorrect)
- Failure to Complete Form 8867
- Failure to Keep Proper Records
- Failure to Ask Adequate Questions/Document Responses
Refer to IRC §6695(g) and IRS Pub 4687 for more.
What happens if I fail to meet due diligence requirements set forth by the IRS?
Failing to meet IRS due diligence requirements can lead to serious consequences, including:
- Suspension or expulsion from the IRS e-file program
- Disciplinary action by the IRS Office of Professional Responsibility (OPR)
- Injunctions barring you from preparing tax returns for others
- Criminal penalties for filing fraudulent returns
Compliance is critical to maintain your professional standing and avoid these risks.
What should I do if I get selected for a due diligence audit?
Contact us immediately. We’ll guide you from start to finish.
Our team will:
- Perform a Due Diligence File & Notes Review for up to 25 files
- Review your client interviews, documentation, forms, and procedures
- Help you prepare your audit responses
👉Click here to learn more about how we can help you avoid or survive an IRS due diligence audit.
Do you offer group training for my staff or service bureau?
Yes. We offer customized group training that aligns with your brand and firm structure. These can be virtual or in-person.
✅ Special pricing is available.
👉 Click here to learn more about our custom compliance solutions for your team.
Can I book a one-on-one audit or review of my current due diligence procedures?
Yes. We offer personalized Due Diligence File Audits, covering up to 25 client files. You’ll receive:
* Feedback on documentation
* Notes review
* Risk assessment and audit readiness tips
👉 Click here to learn more about due diligence risk assessment
What if I’ve already been audited or received a letter from the IRS about due diligence penalties?
If you've already received an IRS Letter 4810, 1125, or any type of penalty notice, you still have options — but time is critical. Our team provides professional Appeal Support Services to help tax professionals respond appropriately, reduce penalties, or even reverse them if the facts support it.
👉Click here to get help with your IRS letter or audit appeal
I have a large number of clients, can you help me set up my own compliance or due diligence department?
Absolutely. We can help you establish an internal compliance process to ensure your team consistently meets IRS due diligence requirements.
This includes:
- Staff training
- File documentation systems
- Due diligence workflow implementation
📅 Book a free consultation for a tailored compliance solution.
What are the due diligence templates and how can they help my practice?
Our Due Diligence Templates & Tools Package includes:
- Interview question bank
- Due diligence checklists
- Notes & audit-ready documentation templates
- Organizational chart for team compliance
- Samples of successful past audit notes
- These tools are essential for systematizing your compliance process.
How often do you offer free masterclasses?
FREE MASTERCLASS LIVE EVERY THURSDAY AT 12:00 PM CST
Discover how to protect your tax practice from expensive audits, penalties, and sleepless nights. Get real strategies from real experts that’ll keep you compliant and profitable. IT'S FREE. IT'S LIVE. IT'S EXACTLY WHAT YOU NEED.
